Skip to content

CS Professional · Arbitration, Mediation and Conciliation · Introduction to Conciliation and its Importance for MSMEs

During MSEFC conciliation of a payment dispute, the buyer, Gupta Distributors, sends a written declaration to the supplier and the conciliator stating that it is terminating the conciliation proceedings. Under section 76 of the Arbitration and Conciliation Act, 1996, as applied by section 18 of the MSMED Act, what is the effect?

The conciliation terminates on the date of the buyer's declaration. Section 76(d) lets a single party end the proceedings by written declaration to the other party and the conciliator, if appointed, so neither joint agreement nor the conciliator's separate declaration is required.

  1. ANo effect, since termination needs both parties to agree
  2. BConciliation terminates on the date of the declarationCorrect
  3. CIt terminates only after the Council confirms the declaration
  4. DIt terminates only when the conciliator also declares further efforts unjustified

Explanation

Section 76(d) provides that conciliation proceedings terminate by a written declaration of a party to the other party and the conciliator, if appointed, on the date of the declaration. Mutual consent is required only under clause (c), and no confirmation is needed.

Did you get it right without looking?

One question tells you little. A timed set on Introduction to Conciliation and its Importance for MSMEs shows your real accuracy, how long you take and where you lose marks.

Practise Introduction to Conciliation and its Importance for MSMEsFree diagnostic mock

More Introduction to Conciliation and its Importance for MSMEs questions